RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Pipeline SaleI'm skeptical of being involved in public-private partnerships in general. I realize part of this may be a personal thing. I think the LCFS program is generally believed to be effective in lowering carbon intensity, and I don't mind TWM participating, or the government initiative to help fund the project. I do think that regulation fueling the profits of private companies can be a bad look, and the metrics TWM is publishing now to promote the project won't be a great look if diesel prices in BC take off.
If it took the form of a low interest loan it'd make more sense to me, but by granting a whack of credits to TWM on top of what they'll generate with the facility, it's passing the costs directly onto consumers, and that will place an extra level of scrutiny on the financial beneift to TWM management and shareholders [see the Sturgeon refinery for how that plays with the public].
From what little I know I think the project has merit, the LCFS program has merit and balancing the company between traditional fossil fuels and whatever comes next is smart strategically, but a net $130m investment for $75m a year in cash flow based entirely on provincially regulated LCFS credits could create some bad headlines in the future. I'm not coming to any conclusions yet, I don't know enough about this to do that, but I think how they fund the project will tell us a lot!